Beijing, China (BBN)-Chinese shares saw some choppy trade on Tuesday following steep losses a day earlier.
The Shanghai Composite index closed up 0.2 per cent at 3,022.86, however Hong Kong’s Hang Seng index reversed earlier gains to close down 0.9 per cent at 19,711.76, reports BBC.
The Shanghai benchmark plunged another 5.3 per cent on Monday after last week’s sell-off rattled global markets.
China’s central bank set the yuan guidance rate steady for the third day to stem currency devaluation fears.
Trading of the offshore yuan also strengthened on suspected intervention by the central bank.
The Hong Kong Interbank Offered Rate (Hibor)- the rate at which banks charge each other to borrow yuan- surged to a record high for the second day on Tuesday.
The record high means the onshore and offshore yuan rates were on par for the first time since late last year.
The People’s Bank of China (PBoC) is thought to be spending enormous amounts of money to buy up its currency- a move analysts say is an attempt to steady its own stock market.
The PBoC weakened the yuan last week to boost exports, which raised questions about how concerned authorities were about the health of the Chinese economy.
Trading in the rest of the region remained cautious.
“A lot of the long-term concerns around China have still not dissipated,” said Angus Nicholson, market analyst at trading firm IG in a note.
Japan’s benchmark Nikkei 225 index finished down 2.7 per cent to 17,218.96.
The market was playing catch-up with the losses on global markets after being closed on Monday for a public holiday.
Australia’s S&P/ASX 200 index closed down 0.1 per cent to 4,925.10, while South Korea’s Kospi index ended lower by 0.2 per cent to 1,890.86, reversing earlier gains.
Meanwhile, shares in Sharp fell 1.8 per cent after local media reported that a government-backed fund had offered to invest 200bn yen ($1.7bn; £1.2bn) to help bail out the struggling electronics maker.
Reports also said that a $3bn restructuring plan for the firm was likely to be finalised as early as this week.
Oil prices hovering near 12-year lows, sent shares in resources-linked shares lower.
Mining giants BHP Billiton and Rio Tinto shares were down another 3.5 per cent and 3.3 per cent respectively in Sydney.